TL;DR
- Spot Bitcoin ETFs bounced back from a $342M one-day outflow to register over $1B in net inflows across two days, driving total ETF flows since January to nearly $50 B (YTD: $14.5B).
- Fidelity’s Wise Origin (FBTC) and BlackRock’s iShares (IBIT) led the charge, FBTC added $421M while IBIT poured in $224.5M, erasing the largest outflow and underscoring renewed institutional appetite.
- ETF trading volumes surged to a May-high $5.3B, AUM approaches $128B, and Bitcoin’s rally past $110K reignited risk-on sentiment and optimism for sustained momentum.
Spot Bitcoin ETFs have snapped back to life, logging over $1 billion in net inflows across Wednesday and Thursday after a brief $342 million outflow on Tuesday. This dramatic reversal pushed cumulative ETF inflows since their January 2024 debut to nearly $50 billion, while year-to-date flows stand at $14.5 billion. Bitcoin’s rise past $110,000, followed by a slight drop only increased investor excitement.
Inflow Resurgence After Abrupt Withdrawal
On Tuesday, ETF holders yanked $342.2 million from U.S. spot Bitcoin funds, the largest one-day outflow since launch. Almost immediately, smart money and momentum traders moved in. Wednesday saw $407.8 million in fresh purchases, followed by a $601.8 million upswing on Thursday. In just 48 hours, the funds erased the previous day’s losses and reclaimed a positive flow trajectory.
Fidelity and BlackRock Dominate the Rally
Fidelity’s Wise Origin Bitcoin Fund (FBTC) led the charge, adding $184 million on Wednesday and another $237.1 million on Thursday. BlackRock’s iShares Bitcoin Trust (IBIT), which sat idle with zero flows at the start of the week, a first since April, roared back on Thursday with $224.5 million. Before Tuesday’s dip, ETFs had strung together a 15-day inflow streak totaling $4.7 billion, with IBIT accounting for 81% of that haul.
Record Volumes Underline Renewed Interest
Bitcoin ETF trading volumes reached their highest daily amount since May, with $5.3 billion traded in ETF shares. IBIT accounted for $4.1 billion of this total. Since it started, trading in spot Bitcoin ETFs has exceeded $1 trillion in total activity. The total assets managed by all U.S. spot Bitcoin ETFs are nearing $128 billion, with IBIT holding $73.6 billion of that amount.
Price Action Fuels Market Optimism
Bitcoin‘s short surge from about $105,000 to over $110,000 this week sparked renewed “risk-on” sentiment, with its dominance rising to 64.6%. Analysts note that higher dominance has historically paved the way for altcoin rallies once BTC consolidation sets in. As ETFs continue drawing institutional and retail capital, the market watches to see if this latest $1 billion inflow surge signals sustained momentum or another volatility twist.
